Frost & Sullivan: Deregulation Intensifies Competition for CATV Industry Participants; Who Will Survive?
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11/18/97
PR Newswire
(Copyright (c) 1997, PR Newswire)
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MOUNTAIN VIEW, Calif., Nov. 18 /PRNewswire/ -- The Telecommunications Act of 1996, allowing local telephone companies to provide cable television (CATV) service in their local areas, has introduced the threat of competition to the CATV market, forcing cable network operators to invest in major upgrades of their infrastructure in order to be able to compete.
According to new strategic research from Frost & Sullivan (www.frost.com), U.S. Cable Television and Associated Technology Markets, the total market in 1996 generated $3.9 billion in revenues, with an annual growth rate of 10.2 percent. It is forecasted that the total revenues for the U.S. CATV and associated technology market will reach $8.9 billion with a compound annual growth rate of 12.6 percent.
"Customer demand for more channels are forcing multiple systems operators (MSOs) into network upgrades and new equipment purchases," says Telecommunications Industry Analyst Alena Brezinova. "Competitive pressure from the digital broadcast satellite (DBS) and multipoint digital service (MMDS) has stimulated the cable network operators defensive spending."
This research covering the CATV and associated technologies market is divided into three segments: CATV transmission and distribution lines, CATV transmission and distribution equipment market and the CATV headend and studio equipment market.
In 1996, the CATV transmission and distribution lines market generated revenues of $1.4 billion. Driven by the transition from coaxial to HFC network infrastructure, the demand for advanced digital cable lines ensuing from more deployment of switched digital video (SDV), and the wireless growth that has stimulated the sales of the microwave transmission and distribution equipment. The market for this segment is forecasted to reach $4.7 billion in 2003 with a compound annual growth rate (CAGR) of 18.6 percent.
The CATV transmission and distribution equipment market and the CATV headend and studio equipment markets are both driven by similar factors. The CATV transmission and distribution equipment market generated $1.6 billion in revenues and is anticipated to have revenues reaching $2.9 billion by the end of the forecast period, while the CATV headend and studio equipment market had revenues reaching $900 million in 1996 and is forecasted to grow to $1.4 billion by the end of the forecast period.
While the competitive arena has yet to take shape, there are currently three tiers of competition that exist in this market. The two market leaders are NextLevel Systems and Scientific-Atlanta, establishing quite a presence in multiple segments of the market. Other major competitors include Amphenol, ANTEC, Lucent Technologies, CommScope, and Thomas & Betts Communications Division.
Second tier competitors are concentrated primarily in one market segment with limited product offerings, and generally use distributors or systems integrators to sell these products.
"The third tier of competition consists of companies that have only a limited presence in the CATV market. Either they are small firms, or they focus on other markets because the CATV market is only a small portion of their business," says Brezinova.
This Telecommunications Industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the telecommunications market.
The technologies reviewed include cable headend equipment, cable transmission equipment, and cables.
Market participants include: ACT/Technico, Adams-Smith, Inc., Adapt Communication Supply Company, Inc., ADC Telecommunications, Inc., ADC Broadband Communications, Adobe Systems, Inc., Ad Systems, Inc., Adtec, Inc., Akai Musical Instruments Corp., AKG Accoustics, Inc., Alcatel Network Systems, Inc., Alcatel Telecommunications Cable, Alcoa Fujikura, Ltd., Alesis Corp., Alias Wavefront, Inc., Allen & Heath, Ltd., Altinex, Inc., AM Communications, Incorporated, Amek U.S. Operation, Inc., AML Wireless Systems, Inc., Ampex Corporation, Amphenol Corporation, AMS Neve, plc, Andrew Corporation, Andrews Tower, Inc., ANTEC Corporation, Antenna Technology Corp. (ATC), Antronix Sales, Antsco Corp., Arcom Labs/Aero Communications, Inc., ART (Applied Research & Technology), Inc., Arvis Corporation, Astrolab, Incorporated, Asymetrix Corporation, ATI-Audio Technologies, Inc., ATx Telecom Systems, Inc., Audio, Ltd., U.S.A., Audio Technica U.S., Inc., Authorized Parts Co., Autodesk, Inc., AVCOM of Virginia, Inc., AVer Media, Avid Technology, Inc., AYDIN Corporation, Azden Corp., BARCO, Belden Wire and Cable Company, beyerdynamics, Inc., Blonder Tongue Laboratories, Inc., B.L.U.E. (Baltic Latvian Universal Electronics), BTS Broadcast Television Systems, Inc., B&K Precision/Maxtec International Corp., Budco, Inc., C-COR Electronics, Inc., C - Cube Microsystems Corporation, Cable Converter Services Corp. (CCS), Cable Innovations, Inc., Cable Link, Inc., Cable Services Company, Inc., Cable Technologies International, Inc., Cable Technologies International of NY, Inc., Cabletenna Corp., CADCO Systems, Inc., California Amplifier, Inc., California Microwave, California Microwave, Inc., CATEL Telecommunications, Celerity Systems, Inc., Century Repair & Service Co., Inc., Channell Commercial Corporation, Channel Master Inc., Channelmatic, Inc., Chaparral Communications, Inc., ChronTrol Corporation, Chyron Corporation, Comark Communications, Inc., CommScope, Inc., Communications & Energy Corporation, ComSonics, Inc., Comtech Antenna Systems, Inc., Conrac Display Products, Inc., Contec LP, Cooper Sound Systems, Countryman Associates, Inc., Crest Audio, Inc., Crookwood, Crown International, D. Co Marketing, Inc., Data Translation, dB-tronics, Inc., Denon Electronics, Digidesign, Digital GraphiX, Inc., Digital Microwave Corporation, Digital Video, Digitrace, Inc., Discreet Logic., Di-Tech, Inc., DOD Electronics, Inc., Doremi Labs, Inc., Dow-Key Microwave Corporation, DX Communications, Dynatech Corporation, Eagle Comtronics, Inc., Editing Technologies Corporation, Electrohome, Limited, Electroline Equipment, Inc., Electro Voice, Inc., E-mu Systems, Inc., Engineering Animation, Inc., Ensoniq Corporation, Ericsson Fiber Access, ESE, Euphonix, Inc., Eventide, Inc., Fairlight, FM Systems, Inc., Fostex Corp. of America, Fujitsu Microelectronics, Inc., FutureTel, Inc., FWT, Inc., Gabriel Electronics, Inc., Gaither Studios LLC., Gamco Industries, General Instrument Corporation, GI Satellite Data Networks Group, Gould Electronics, Inc., Graham Patten Systems, Inc., Groove Tubes, Harmonic Lightwaves, Inc., Harrison by GLW, Inc., Hewlett-Packard Company, Hitachi-Denshi America, Ltd., Holland Electronics Corporation, Hughes Communications Inc., Hyundai TV/COM, IBM North American Market Analysis, Ikegami Electronics USA, IKUSI Telecommunications, Inc., Imedia Corporation, InnoVision Technology, Integrated Network Corporation, IPITEK, ITT Cannon RF Products, Jampro Antennas, Inc., Jerry Conn Associates, Inc., JVC Professional Products Company, JFW Industries, Inc., Keptel, Inc., KES, Knox Video, Kramer Electronics, Ltd., Lance Industries, Larson Electronics, Larus Corporation, Leader Instruments Corp., Leaming Industries, LeBlanc Communications Inc., Lectrosonics, Inc., Lee Filters U.S.A., Leitch, Inc., Len Andrews Enterprises, Inc., Lexicon, Inc., Lindsay Specialty Products, LNR Communications, Inc., Lucent Technologies, Mackie Designs, Inc., Macromedia, Macrovision Corporation, Magni Systems, Inc., Main Line Equipment, Inc., Manley Laboratories, Matrox Electronics Systems, Media Computing, Inc., Mega Hertz, Microphase Corporation, MicroSat, Microtech Gefell GmbH, Microwave Filter Company, Inc., Mitsubishi Electronics America, Monroe Electronics, Multidyne Electronics, Inc., Nady Systems, National Communications, Inc., NCS Industries, Inc., NEC America, Incorporated., Neumann U.S.A., NewTek, Inc., Olson Technology, Incorporated, Optibase, Incorporated, Optivision, Inc., Osicom Technologies, Inc., Otari Corp., Panassonic Video Communications Co, Panasonic, Inc., Parallex Data Systems & Services, Passive Devices, Inc. (PDI), Peavey Electronics Corp., PECA, Inc., Performance Power Technologies, Pesa Switching Systems, Inc., PFM Electronics, Inc., Philips Broadband Networks, Inc., Philips Electronics, North America Corporation, Pico Products, Inc., Pinnacle Systems, Pioneer New Media Technologies, Inc., Pirelli Cable Corporation, Power & Telephone Supply Co., Inc., Power Conversion Products, Inc., Powertronics Equipment Company, Inc., PPC (Production Products Co.), Prime Image, Pro-Bel, Ltd., Quality RF Services, Inc., Quantel, Incorporated, Quintar, Inc., R.L. Drake Company, Rank Cintel, Inc., Raychem Corporation, RMS Electronics, Inc., RMT Engineering, Inc., Rohde & Schwarz, Inc., Rohn, Roland Corp. U.S., Ross Video, Ltd., Sadelco, Inc., Samson Technologies Corp., Sanken Microphones, Inc., Scala Electronic Corp., Schoeps/Posthorn Recordings, Scientific-Atlanta, Inc., SCITEX Digital Video, Inc., SCM Microsystems, Sencore Electronics, Sennheiser Electronics Corp., Sharp Electronics Corporation, Shure Brothers, Inc., Siecor Corporation, Sierra Video Systems, Inc., Sigma Electronics, Inc., Signal Vision, Inc., Simplicity Tool Corp./Sitco Antennas, SkyConnect, SMI, Snell & Wilcox, Inc., Softimage, Inc., Sola, Solid State Logic, Inc., Solo Professional Products, Sonic Solutions, Inc., Sony Corporation Business Systems, Soundcraft, Inc., Soundfield Research, Ltd., Spacecraft Components Corporation, Spectral, Inc., Spectrum, SSE Datacom, Standard Communications Corporation, Stellar One Corporation, Studer-Editech, Studer Professional Audio AG, Studio Technologies, Inc., Synchronous Manufacturing, Inc., T.R. Pitts Company, Tactile Technology, TC Electronics, TEAC America, Inc., Tektronix Grass Valley Products, Tektronix, Inc., Telect, Inc., Telex Communications, Inc., TGI North America, |
